Sri Lanka Consolidated Acts Sri Lanka Consolidated ActsBad debts
| 24. In ascertaining the amount of tax payable in any taxable period, there shall he deducted an amount of tax corresponding to any bad debt incurred in the taxable activity of a registered person and which has become bad during such taxable period. The amount of tax deductible shall not exceed the amount paid as tax in a previous taxable period in respect of the debt which is to be written off :Provided that if any amount is received in any taxable period by that person on account of the bad debt so written off, notwithstanding the provisions of section 33, the amount received shall be treated as a taxable supply during the taxable period in which it was received and shall be liable to tax. |